Not Every Company Is Built for the Big Leagues
Run the math before you buy the myth.
Run the math before you buy the myth.
I’m skeptical of many startup “rules.” But trusting in exceptional founders has rarely led me too far astray.
Fifteen years into my venture capital career, I’ve come to believe there are two undeniable laws of startup physics: 1) Capital compounds both positive and negative formulas. 2) All positive formulas compound at diminishing rates of return.
Does raising a large amount of capital make a startup more likely to succeed? Is capital a weapon? Do startup founders need to “go big or go home?”
How do you become humongous with humble financing? There are a few principles that seem common.
There’s a widespread belief among founders that venture capital is a precursor to success. It is true that VC is a common denominator of the most successful tech startups, but it isn’t a prerequisite, especially at the early stages.